Sunday, November 27, 2005

Time is Money; Or, Is It?

The bankers who manufactured this grotesque system KNOW that the only way they can make themselves filthy rich is off the backs of others.

Think about it; a banker has only 24 hours in his day--JUST LIKE every other human being.

But, somehow his hour is worth millions, while the average laborer's hour is worth 7 bucks.

Why?

Bankers insist that INTEREST represents "the time value of money."

But you and I know that money does not have time, only people do.

I challenge anyone to bury a dollar, come back in a week and see if it's not still a dollar!

So, what gives?

By gaining control of the MONEY SUPPLY and convincing people that money has a TIME value, central bankers (through interest) effortlessly collect unto themselves the value of millions of hours of other people's time, the equivalent of RENT on all MONEY in circulation, leaving those who borrow MONEY with only a fraction of their TIME! (i.e., wealth) Voila!

The value of a central banker's hour is now worth millions of hours OF OTHER PEOPLE'S TIME!!!

Among men, some will be able to see clearly what others must struggle to understand.

Friday, November 25, 2005

The American Economy Has Left The Building

Richard Sauder's reaction to the announcement of GM's layoffs is almost identical to my own. I have emphasized in bold italics the portions that are particularly important.

"The news of the 30,000 jobs that General Motors recently announced it plans to cut caught my attention like a searing brand plunged deep into my mind."

"[T}he United States ... is rapidly deindustrializing, in large degree as a consequence of ... so-called Free Trade agreements ... such as NAFTA, CAFTA and the WTO which have made capital and entire industries very portable internationally, to the considerable detriment of workers at home and abroad."

"[S]ociopaths are running most of the major governments of the world, and most of the major industries and financial institutions, and sociopaths are not much interested in mutual uplift and global benefit for the great bulk of the human race . . . [they] are primarily interested in war, plunder, destruction, cruel domination, violent subjugation, and ruthless social control."

"[T]he United States is positively awash in a tsunami of imported merchandise...the captains of American industry destroy the country from within,ransacking the economy, plundering entire industries and communities as they loot the productive base of the country for their own personal enrichment,without the slightest thought for the well-being of anyone else at all. . . the psychopaths and sociopaths in the ... government and in high finance ... liquidate the country from under our feet..."

"Their behavior is like that of madmen ... who heat the house in the cruel depths of a bone-chilling ... winter by stripping the insulation out of the walls and using it to stoke the furnace! As the flames leap higher they strip the shingles and plywood off the roof and fling them into the furnace!! ... they fling back the blankets ... rip the paneling off of the walls, tear up the floor boards and take an axe to the furniture and feed it all to the devouring flames in the furnace."

They belittled [Ross Perot's] warning that the "sucking sound"they were about to hear would be the sound of ... capital and jobs [being] leached out of the American economy...but [they] didn't like him ... so they tossed him aside. So much to plunder; so much to loot -- and so little time!!

I rest my case. We can't both be wrong in our assessment of what's happening. But, I would argue that underneath the surface of those trade agreements fractional reserve financing at INTEREST is primarily to blame for the multi-national economic devastation that we are witnessing today, along with a number of corrupt greedy dictators willing to sell their people for a paltry price.

Brief Hiatus...

I am taking a brief hiatus to prepare for final exams. In all likelihood, I will not be posting new entries until the end of December (unless I positively can't resist).

For those visitors who have stopped by a number of times, thank you for your time and please don't forget me! I still fight the good fight offline and as long as blood courses through my veins, God willing, I will be back to share my impressions and my knowledge with you.

For those who are visiting for the first time, thank you for coming and I hope that you browse through previous posts and join those I addressed above in visiting again and again.

If, like me, you believe that equal opportunity for ALL men and women begins not at the university or in the job market, but from THE minute that we are born, then stay with me on this journey to find out how many people it takes to change the world.

If, unlike me, you believe that 'this is how life is supposed to be' and that 'interest is a fact of life,' then let me remind you that the money that's earned through interest comes from the blood and sweat of LABOR and that those who rely on interest for their livelihoods DEPEND on those who work for a living--NOT the other way around.

If it does not, then it is oppressive and unjust and breaches the trust of the people who agreed to be bound by the social compact that brought them together.

In order to promote their own individual welfare, men and women agree to join together as a nation and be governed by uniform rules and standards (e.g., money) that protect and promote the general welfare.

The government breaches this contract when it gives a privileged few both the means to manufacture need among their fellow countrymen (control of the money supply) AND the instrument by which they can proceed to fully exploit that need (interest).

Having said that, there is no practical way that a government can abolish charging interest on money loaned since there will always be those who are ready to exploit another's need and those that are desperate for money because they cannot acquire it through legitimate means.

There is no such thing as a FREE LUNCH, and I do not advocate that there should be. BUT, giving people equal access to capital either as interest-free loans or in the form of equity capital IS NOT a free lunch. Everyone would remain responsible for paying back their loans, or for using their best efforts to put equity investments to productive and profitable use.

And of course, the hundreds of thousands of people who depend on the financial sector for their livelihoods must contine to have the opportunity to maintain that livelihood. EVERYONE has a RIGHT to OPPORTUNITY!

But, the central banking system MUST NOT be for-profit or privately owned because there is too much danger in allowing others to profit from the public trust. Having said that, branch banks can and should be run as non-profit organizations at the local level, charging fees for the administrative costs and financial analysis required to circulate "the public trust" (money), prudently.

There could still be privately owned for-profit equity investment banks if it's desirable, but they would not be in the business of lending at interest simply because there would be plenty of access to interest-free loans through non-profit lending institutions.

Poverty can result from a number of factors. But, it is obvious that there is something terribly wrong with our monetary system when poverty is this severe and this pervavise in a country that has more than enough resources for everyone to survive and thrive comfortably.

This outcome is entirely possible in a free market, capitalist economy provided that there is interest-free public capital accessible to EVERY man and woman who has the desire, will, and ability to make PRODUCTIVE use of it.

The True Purpose of Money

MONEY is a uniform standard of exchange that has value only insofar as it is accepted by enough people such that it can effectively serve its purpose--to facilitate exchange of people's labor and the fruits of people's labor.

How many people is enough? A self sustaining economy has enough people. In other words, a community (however small or large) has enough people if collectively it produces everything its individual constituents need to survive and thrive.

Tuesday, November 22, 2005

A Tribute To JFK

" A Revolution is coming- a revolution which will be peaceful if we are wise enough: compassionate if we care enough ; successful if we are fortunate enough- but a revolution is coming whether we will it or not. We can affect it's character, we cannot alter it's inevitability."--JFK 1963

43 years ago today, JFK was assassinated. From what I understand, JFK signed an executive order about one month before he was assassinated that would have allowed the US Treasury to print its own notes instead of issuing bonds as the Federal Reserve would've had it do. But, don't take my word for it; do the research.

He was an honest man, who cared about hardworking people and he paid for his compassion and his integrity with his life.

I salute his courage and integrity and I implore all of you good folks not to give up because JFK was NOT the last of America's great leaders.

Words of Wisdom From A Former President

"Equality of talents, of education, or of wealth can not be produced by human institutions. In the full enjoyment of the gifts of Heaven and the fruits of superior industry, economy, and virtue, every man is equally entitled to protection by law;..."

i.e., redistributing wealth is a bad idea; I agree.

"...but when the laws undertake to add to these natural and just advantages artificial distinctions, to grant titles, gratuities, and exclusive privileges, to make the rich richer and the potent more powerful, the humble members of society the farmers, mechanics, and laborers who have neither the time nor the means of securing like favors to themselves, have a right to complain of the injustice of their Government..."

i.e., handing out monopolies is a bad idea; I agree.

"There are no necessary evils in government. Its evils exist only in its abuses. If it would confine itself to equal protection, and, as Heaven does its rains, shower its favors alike on the high and the low, the rich and the poor, it would be an unqualified blessing. In the act before me there seems to be a wide and unnecessary departure from these just principles.

Andrew Jackson was referring to a bill before him to renew the exclusive charter of the central bank of the United States of America which he rightfully vetoed. Read the excerpt where I got these quotes, and the full text of his letter, if you care to know the truth.

And for those of you who despise communism and socialism because they involve redistribution of wealth; well, through a centralized interest-based monetary system our money is being redistributed BEFOREit ever gets to us!

Monday, November 21, 2005

Mises Blog: Libertarian In Name Only

It looks like its official. My comments have been BLOCKED from the Mises Economics Blog!

I was trying to post a comment to Our Money Madness by Lew Rockwell and I received a notice that I was not allowed to post.

So, much for libertarians!

I was right the first time, libertarian is merely a cheap catch phrase on that site.

If you care to read Lew's article, my comment to it would have been:

As glorious as a return to hard currency would be for libertarians, the costs of producing and handling that money would detract from its value to the economy as a whole as the energies and resources expended in maintaining the curreny might be better used elsewhere in the economy. That is one of the reasons it was abandoned, in the first place.

In contrast, in an interest-free economy, the barriers created by hard currency against the abuses of printing too much of it would not be as sorely needed as it is in today's interest-ridden economy. A uniform paper money could be printed as needed in each state at the local level, where abuses can be more easily contained, and money production in all the states can be coordinated and adjusted at the federal level to ensure balanced economic growth. Because money is interest-free, accounting and economic analysis is much simpler than if it was encumbered with interest.

Now, I'm not an economist. But, it seems to me that the wild fluctuations in the value of our money throughout our nation's history is not just the result of printing too much of it, but also the consequence of the unbridled use of interest at every turn.

If you believe in the freedom to exchange ideas and you have a moment, let the guys at Mises know that it's neither nice, nor consistent with liberty, to suppress opinions just because you don't agree with them!

Human Nature

You can structure things so that human qualities that are harmful (e.g., SELFISH greed) are not allowed to run amok.

Now, this is what you DO NOT do:

You DO NOT give one entity control of the money supply;

allow it to corrupt that supply with an accounting fraud called interest; and

then expect it to control itself!

Selfish people do not control their own greed. It is either contained, OR it will consume all else.

* * *

Selfish People Do ANYTHING They Can Get Away With

* * *

Take for example, our monetary system, which is controlled by extremely selfish people.

The US Treasury does not print interest; banks do not extend interest; both issue only PRINCIPAL.

Nevertheless, interest has the magical power to collect A LOT OF MONEY!!!

And, the only way that MONEY can be paid is by tapping into the principal that's supposed to be used to fuel the economy, and so on and so forth, until all the money that's printed or issued is concentrated into a few hands.

I want to recommend that you begin your struggle to balance the budget by eliminating government bonds and ending the practice of interest.

My recommendation is backed up by sound reasoning and it's available online at http://wakeupfromyourslumber.blogspot.com/2005/11/why-would-you-loan-money-to-someone-if_09.html

Interest is gutting America's physical economy. Look at every company that's cutting jobs today and see how much they spend on interest. Look at what the federal government spends on interest.

Then ask where does the money come from to pay all this interest? The only place it can come from--principal--the people's principal, a.k.a., our hides. The government doesn't issue interest; it only issues prinicipal.

Where Do Your Tax Dollars Go?

To illustrate my point about interest with figures that are closer to home, this link shows state and city break downs of how your federal tax dollars are spent.

For example, the average household in NY paid $7044 in federal income tax, of which$1310 went to pay interest on government debts.

Wow! That's a lot!

But as usual, there is more truth in what is NOT said than what is said.

What these fact sheets DON'T say is what portion of money spent on every other item on the list goes to pay interest on someone else's debts!

Huh? What are you talking about qrs?!!

Yes, folks. A big chunk of the $1428 per average NY household that pays for healthcare, pays for interest on debt held by hospitals and other health care providers. The same goes with 'defense' manufacturers that pay interest on their debts, and public housing complexes that pay interest on mortgages, etc., etc., etc.

And that's not all, folks!

Many hospitals are tax-exempt non-profit organizations. So, interest paid on their bonds is tax-exempt!

This is what happens when the source of our money is centralized, AND not a single dollar circulates without interest being attached to it.

Sunday, November 20, 2005

Creditors Intend to Gut General Motors

"GM's previously announced plan, to slash up to 25,000 jobs over three years, is likely to accelerate in talks with the United Auto Workers, analysts say, so GM can shutter plants before GM's national union contract expires in 2007."

This is CATASTROPHIC! Tens of thousands of people will be thrown into despair!

There is no time to waste.

Eliminating interest must be the first thing on everyone's lips before the new year dawns.

Life Is Risky; But Lending Isn't!

Thanks goes to Bill whose comment to credit ratings evoked in me a new mental picture of interest.

Here's how it happened.

Billfaster (aka Anonymous) said:

"I simply don't follow the logic behind your argument...How would a non-interest based economy work? If the banks are unwilling to asses interest charges, then where is the incentive to lend the money - through equity participation?

How long do you think it would take for the money supply to dry up if each lender had to take an equity stake in your car or home, for example. Their capital would be indefinitely tied up.

Where does the new liquidity come from? Obviously not you or me as what incentive would we have to put money in the bank if they are not paying us interest to do so.

Where do the risk averse investors turn? What about the elderly and retirees who feel comfortable with CD, money market and Treasury returns? The democratic platform against private social security accounts runs contrary to your very argument as they claim that equity participation is much too risky..."

My reply:

Thanks, Bill, for your thoughtful comment.

Your concerns are valid. Circulation is the whole point of introducing currency into an economy.

"Where is the incentive to lend the money?" The only wholesome place it can be, from the profits of equity investing.

"How long...would [it] take for the money supply to dry up if each lender had to take an equity stake in your car or home... Their capital would be indefinitely tied up." By definition, capital is invariably "tied up" once it’s invested in an asset like a home or a car. The only thing interest accomplishes is it transfers an excess portion of the borrower's earned income (which is not "tied up") to the lender, and so on and so forth, to infinity.

And, what do you think the lender does with all the interest that's collected? Most of it the lender can't even spend! It is just too much money!!! So, he lends it to others and others, etc., etc...

Where does the new liquidity come from? Where it’s supposed to come from when there is an increase in a nation's productive capacity--the government press! That's why it's created. The government need only make sure it does not print too much, which is easier to do when there’s no interest than when you have to keep track of principal AND interest.

Where do the risk averse investors turn? I know it is difficult to imagine now because we live in an interest laden society. But, risk averse lenders will invest their money in the ways that are available to them, just as they do now. Only interest bearing loans won't be one of them. Margrit Kennedy presents some creative suggestions to give people incentive to circulate their cash.

Finally, of course equity participation is very risky!!! That which is taken must come from somewhere.

Interest based lending has evolved into a little to NO RISK activity. Simply, it is unnatural.

Risk is inherent in life. You cannot eliminate risk, you can only transfer it--from lenders to equity investors!

Restore the balance and equity investing will no longer be as risky as it is now.

Thanks a lot, Bill! I didn't think about it this way until you asked me!

Thank God for the internet, and thank God for people like you who are ready to talk!

Why Am I Doing This?

I love my family; I love my friends; and I love all the hard working, honest and decent people in the world who, no matter how wrongheaded they can be sometimes, care about someone other than themselves and have something POSITIVE to contribute to this world.

I believe that there is more kindness and generosity in this world than there is selfish greed, but that selfish greed has the upper hand right now.

That upper hand is INTEREST, and it is subjugating the rest of us to its will.

I believe that knowledge can help good people make the right choices--choices that will enable us all to live in harmony and enjoy the blessings of this world.

I believe in miracles.

But, I believe that God helps those who help themselves and I cannot do it alone.

Moneylenders Profit Most By Exploiting Others' Need For Money

"Title lenders typically target 'captive' borrowers who cannot afford a house or qualify for credit cards, but suddenly confront a cash crisis."

No creativity or productivity required; pure exploitation.

"That's what happened to Sharon Jones. [She] paid $1,365 toward her $500 title loan [that's some ROI, with no risk!!!] because her disability check only covers interest payments."

This isstandard operating procedurefor moneylenders who profit by charging interest.

"But title-loan industry executives testified that tougher laws will put them out of business and deny cash-strapped Georgians like Jones access to their lender of last resort."

Typical, the old "without us, how will these needy people survive?" I have a novel idea: how's about the government terminates bankers' monopoly on our money supply and lends interest-free money directly to citizens? Then no one will need their magnamious services!

"'The military's an especially ripe target' because of the rank-and-file's relative youth, lack of financial sophistication and concern that money problems could cost them advancement..."

What they fail to admit is that anyone who is vulnerable is a target. And all of us are one step removed from vulnerability.

"Lending money at what amounts to [350% APR] or more should not be tolerated: If the payday and car-title loan industry wants to maintain that such exorbitant rates are necessary to do business, it is business that is not worth doing,"

While these types of loans are particularly egregious because of their extremely high interest rates, even the most modest amounts of interest can transform borrowers into slaves.

Take a look at NYC's MTA. All its bonds are issued at around 4-5%APR and they pay over $1.2BILLION annually in interest on their bonds! So, much of our tolls, fares and taxes go to paying interest on outstanding bonds while we wait in the street for broken down transit!

Without control of the money supply coupled with that ingenious accounting instrument called INTEREST, these folks would have never been able to BUY UP ALL THAT MEDIA.

When it gets this bad, you have to question your assumptions. I did. And what I discovered is not pretty.

We've been had, and continue to be had, at a price tag of over ONE BILLION DOLLARS a day in interest on government bonds. And that's just the tip of the iceberg. Every city and state government in this country is up to its eyeballs in interest payments.

Learn about the monetary system; a debt-based system is the instrument by which money is consolidated into the hands of a few.

Interest: The Unnatural Disaster

Emma Dixon writes about the role institutionalized racism played in the unnecessary losses suffered by African Americans both during and after hurricane Katrina and there's much truth to what she says.

But, you must look beyond skin to understand the whole truth behind the looming economic disaster we all face today.

There is no doubt that African Americans suffer disproportionately from poverty and lack of education in America.

But, this results from historical economic inequities that were not only never compensated as they should have been, but more importantly have been systematically exploited by our monetary system until this day.

We are easily divided by the color of our skins, which makes it an easy vice to target; racism is almost universally deplored.

But, classism is not. The rich get richer and the poor get poorer. Isn't that the way it's always been?

Isn't that the way it's supposed to be?

NO; absolutely not; not if you have a just monetary system.

A just monetary system does NOT give exclusive control of the money supply to a few entities and allow them to exploit everyone else's need for money by charging them INTEREST on its use.

That is economic discrimination at its worst. We must end it in order to save our children.

Iraq Cannot Be Won; But We Can Beat Our Corrupt Monetary System!

Representative John Murtha of Pennsylvania made this speech on October 17 to the Democratic caucus.

Hoorah, for Murtha!!!

Now, let's see who'll listen to him.

IMHO, Murtha and others like him should focus on the war that can be won; the one against the enemy that's eating our physical economy alive--INTEREST.

"Our deficit is growing out of control; Our deficit is growing out of control;Our deficit is growing..."

"The director of the Congressional Budget Office recently admitted to being terrified about the deficit in the coming decades."

The war in Iraq is a catastrophe, no doubt. But, think about it. What's the engine that drives this catastrophe?

Our monetary system.

If warmongers didn't have this much money rolling out of OUR pockets and into THEIR coffers, then they would not be so politically powerful, and we would not be so politically weak and the US would not have gone to war.

And don't fool yourself, defense contractors are not the only folks getting BUSHloads of money. Bondholders of every persuasion collect BUSHloads of our tax money every day through interest.

If you've seen my posts before, then by now you might think 'what is it with this person? why this obsession about interest and the monetary system?'

Well, think about it. Up until August 31, the government had spent over $335 BILLION on INTEREST on US Treasury Bonds in 2005. That was only $100 BILLION less than they spent on the Department of Defense during the same period and almost $300 BILLION more than they spent on the nation's education.

Think about it and if you think that there's something wrong with that picture, then do something about it.

Murtha said what had to be said, but his words fall on deaf ears. As long as the warmongers wield the CASH, the rest of us will be forced to follow.

In An Interest-Free Economy Money Would Not Deviate In Value

Daysman said...

We both envision a banking system that is not allowed to charge interest determined by the market. Your voice is strong for a non-interest, not-for-profit money system; reminiscent of the Teutonic knights money structure. It is very rigid but it does retain value, I would even say that there would be no need for Congress to set the value of a dollar, money would not deviate in value. Wages would be king in such a system but bankruptcies could be brutal; there was no credit in the Teutonic knights' money system, credit came about with the advent of commerce and the industrial age.

We are in complete agreement that imparting a monopoly on the currency was a bad idea. For America to write a bond... in essence America takes out a loan, hence the bank is loaning "bank money" to America... instead of America issuing her own Constitutional money is bizarre and fantastically corrupt. Not only do we owe interest on those bonds, we owe the principal. When America issues her own money the nation is enriched. When America instead borrows money from the Federal Reserve the nation is indebted. The IRS then collects that debt from every American household and deposits it in the Federal Reserve. The Federal Reserve is a banking scam, pure and simple.

I think you tend to roll together fractional banking, currency speculation, bond money, compound interest loans; both corporate and mortgages, and simple interest (yes there still are simple interest loans; auto financing is simple interest) in your mind and label the whole evil beast as "interest". Nothing incorrect in your view, but understand that my view is that we need to stop everything except the simple interest loans. Banks can function as simple savings and loans to the benefit of free society.

Either one of our views would require the hand of God to execute... I personally hold fast to the hope that Jesus will return in the near future and clean the stinking planet up. I can't imagine a grass roots effort acquiring the momentum needed to overthrow the elite ruling class that has held the world in it's grip for centuries. In today's world, those rulers are bankers.

qrswave said...

Thanks, Daysman.

I understand your point. Simple interest is far better than all this crap. But, it is nearly impossible to turn the current tide. If we're going to go through all that trouble we must not settle for anything less than equal access FOR ALL to the benefits of our monetary system. That is not possible with interest.

This new tax break for capital gains is just another in a long line of economic policies that accelerates the job that INTEREST is designed to do: transfer wealth from those who have only labor and time to those who have access to more money through the formers' need for it.

This reduction in capital gains tax plugs one of the only mechanisms that threatens to slow that transfer down. If capital gains tax were allowed to stay in place, the interest they earned would just go to pay the interest they're charging!

INTEREST is the biggest hoover-matic money sucking machine the world has ever seen.

"One of the biggest problems facing the industry is slower growth in advertising sales, which makes up some three-quarters of their revenues."

How do they make the remaining quarter of their revenues?

"[t]he main costs for newspapers are paper and people. Costs for employee benefits like health care have been rising steadily, and newsprint expenses are up some 10 percent to 15 percent this year."

That's easy, let's get rid of all the paper. And if that's not enough, let's get rid of all the people!

Or, maybe that's not such a good idea. Who will we collect money from? Okay. Let's look at our other expenses.

How much do we spend on INTEREST to capitalize all those printing presses we run?

But wait, "newspapers owned by publicly held companies earned an average of 20.5 cents on the dollar in 2004, a very healthy margin for any business. By comparison, companies in the blue-chip Standard & Poor's 500 Index of large U.S. companies made an average of 11.4 cents on the dollar in 2004."

So, why all the fuss?

"Investors are mainly concerned about what a company will make in the future, not what it's making right now." Well heck, that makes sense.

"And that goes for bond investors as well as stock investors."

Whoah!!! Wait a minute; these newspapers have bondholders? And they collect interest? Exactly how much interest are these folks collecting?

Maybe that's where the budget cuts need to start, because there are only so many jobs you can cut.

I mean, employees are the same folks who buy the product; who are you going to sell news to, even if it's all digital?!!!

Folks can't afford laptops and internet connections if they don't have jobs!!!

Disney Making Less From Consumer Products Than Parks And Resorts

Let's see. Generally, it costs more to go to Disneyland than it does to buy your kid cheap 'made in China' Disney merchandise sold at the mall.

So, it stands to reason that, generally, those who visit the theme parks have more disposable income than those who are stuck buying the cheap consumables.

Now, let's apply that to the facts. Consumer sales down means that people with small incomes can no longer afford the cheap crap that they used to be able to afford. Parks and resorts profits are up means that those who can afford to go to these parks, can afford to spend more.

Now, I could be mistaken. It's possible that there are more people who can afford to go to the parks and resorts than there were before. But, something tells me that's NOT likely given the apparent realities of our economy today.

The inevitable conclusion, which we all already know, is that those who have more cash are getting more of it, while those who have less cash are getting less of it.

Think about it, most of the folks vacationing at Disney parks have some stream of interest income, whether it's from investing in bonds, or from huge 'preferred money market accounts.'

Now, I'm not saying all these folks are bad. Many of them don't realize how the system works. They don't FULLY realize that their easy profits MUST come at the expense of someone else suffering through no fault of their own.

Folks, there can be NO OTHER OUTCOME when you allow money to be gotten from money without adding anything productive to the economy. Indeed, through INTEREST money makes the biggest profits by exploiting those who need it most.

More budget cuts for US, but ONE thing stays in place

According to this AP report, "House Republicans sweated out a victory on a major budget cut bill in the wee hours Friday...[making] modest but politically painful cuts across an array of programs for the poor, students and farmers."

And this is a "victory?" This begs the question, WHO are they fighting for?!!

The so-called "deficit-control" bill "would slice almost $50 billion from the deficit by the end of the decade by curbing rapidly growing benefit programs such as Medicaid, food stamps and student loan subsidies. Republicans said reining in such programs whose costs spiral upward each year automatically is the first step to restoring fiscal discipline."

Uh, excuse me, but what about the over $335 BILLION the federal government has already spent this year on INTEREST?!! Why don't you start by re-examining the structural assumptions that allow THAT to continue?

Comments

Posted by Jim Bradley to The Truth Will Set You Free at 11/17/2005 01:12:45 PM

A lender gets a return for deferring consumption as deferring consumption is a cost (it's painful to save). Since you propose giving lenders zero return, I submit the utopia you envision will not be possible without a massive exercise in state enforced lending with punitive fines, jail, etc. -- a reduction of liberty, not an expansion of it.

The exponential rise in debt is from the central bank holding interest rates artificially low and thus encouraging borrowing to offset inflation, while defending the banking system with a currency that can be expanded at will (and shifting risk to depositors with the depreciation of their savings). Since banks don't have much "savings" of their own, they bear little of the risk. That's an outcome of the structure, not of the illegitimacy of compound interest.

Further, compound interest and simple interest are the same ... i.e. one can be mathematically transformed into the other. For instance, 6% simple annual interest yields $60 from $1000 over one year. Monthly compounded interest of 5.841 because (1+.05841/12)^12=1.06 or 6% additional.

Clearly there are serious problems with these views. Join up, but be right.

Posted by qrswave to The Truth Will Set You Free at 11/17/2005 04:07:37 PM

It's apparent that we disagree on a fundamental issue.

You think there's nothing wrong with interest and I insist that it is at the heart of our economic woes.

At least we agree that the private monopoly by the Federal Reserve Bank is catastrophic.

Let's leave it at that, for now and see what other people believe.

Posted by Jim Bradley to The Truth Will Set You Free at 11/17/2005 04:51:43 PM

qrswave - OK we can discuss that part. Please specify why it is wrong that a person (you as well) earn a positive return in exchange for the cost of deferring consumption.

Why Does Your Credit Score Drop When You Shop?

"I'm no economist, but what I want to know is how a person can have his credit rating lowered every time he or she shops around for something, cars, car insurance, anything in which credit is checked. I know what the answer is, it's been explained to me that shopping around raises a red flag with creditors.

That excuse is bullcrap. It's economic discrimination. If you have an 800 credit score, your pretty much going to get the lowest intrest rate possible. But if your in the 600's for whatever reason, your going to take a bigger hit if you even try more than two or three car dealerships to get an accurate idea of what your monthly payment is going to look like.

That is not fair. That's the problem I have with interest.

My reply:

"That's a brilliant observation, Fred. It makes perfect sense now.

The trouble starts when the government gives the banks exclusive access to the money, but then it gets terribly wrong because bankers take advantange of this monopoly by charging INTEREST.

So, the whole system expects you to pay in CASH; but in order to get some CASH, you have to pay more CASH, a.k.a, INTEREST!. You simply have no access to cash without interest!

So of course, once they see that you need some cash badly, i.e., you're shopping around and intend to borrow boatloads of money, they lower your credit rating so they can charge more interest!

Thursday, November 17, 2005

Twisting The American Dream; A Marketer's Dream, That Is

Twisting The American Dream is a great piece that takes a cautionary look at the propriety of turning a 16-year old girl into a professional golfer who can make her first million before she learns to drive a car.

For those of you who know me, it's not hard to guess what my position is on this.

"MAKING IT BIG" is just another marketing tactic that uses the media and a lot of CASH to whip up popular frenzy over a megaspectator sport. The goal is to lather the wild-eyed look in people's eyes over the prospect of making a great deal of money while engaging in something that's enjoyable--after all it's a sport!

This is exploitation pure and simple.Parents want money and fame for their children, after all they love their children. Children want their parents to be happy and want their parents to love them, after all they love their parents.

The only ones who don't give a hoot about either are those who are whipping up the frenzy and making a buck off of it. If there are millions in it for the girl and her family; there are billions in it for others.

And after all, the beauty of competition is millions of little folks kill themselves trying but it's not too costly to pay only one in the end. Besides, that one is doing a lot more than winning, she drives the marketing engine that feeds the industry.

In any event, making "money" is not bad per se. But, exploiting children to "tap" into a new market is. I suppose if you don't mind the culture of greed it perpetuates; these types of megabucks-megaspectator sports are all in good fun--just like the LOTTERY, which is obviously good for society [insert heavy sarcasm].

But more importantly, they accelerate the engine of the hoover-matic money machine that sucks up time and labor from those who have nothing but their time and their labor and concentrates it into the hands of those who do nothing, but have MONEY.

Time to wake up folks. If it's costing you a lot of MONEY just to have a little leisure time with the family, then maybe you should find another past time.

You should not have to work harder and longer to get the CASH required to have a little fun. Remember, for those of us who WORK for a living, MONEY does not grow on trees!

"You're Doin' A Heckuva Job Brownie!"

No one can forget those now infamous words from our appointed head of state G.W. to Michael Brown, then head of FEMA, just after Hurricane Katrina ravaged Louisiana and Mississippi.

But, this is merely one of a string of absurdities that have and continue to characterize the BUSH administration, as so clearly demonstrated by the content of emails exchanged between Brown and other FEMA officials during and after the hurricane.

One of the readers asked "Why Are These Guys Still In Office?"

You might guess what my response was--BECAUSE They Control The MONEY supply!

And, I'll say here what I said there. It's important to learn about gross malfeasance committed by our governing officials.

But, in discussing the sheer absurdity of their conduct we must focus on its instrumental value and not just its entertainment value.

We must ask ourselves what other frauds are being perpetrated against us because we remain uninformed?

It's time to ask who controls the money supply? Why? and How?

If you love your family and your freedom and believe that each individual should have equal access to the benefits of our monetary system based on their own labor and ingenuity, then take the time to learn what's wrong with our monetary system.

Tuesday, November 15, 2005

Daysman Chimes In!

Your Risk argument becomes crystal clear when you study mortgages. Mortgages have relatively no risk for the Lender because they are backed by the home. Yet, mortgages amortize future compound interest into the earliest payments and that results in 30 year mortgage payments that send over 90% of the payment to "interest"... which is like calling over 50% of our income "taxes".

I do think there is a fair "tax" and a fair "interest" which we owe; but over 50% of our income should not be taken for "taxes" and over 90% of our mortgage payments should not be stolen a la "interest".

The Boston tea party took place because colonists didn't want to pay the tea tax... tax meant 1%. In America today we are splitting our income with the government; it isn't taxes, it's too high to be compared to what the Godfather took from his victims in the old days, so it isn't protection either, it is partnership in crime; the government has drafted us all as partners to commit our lives to killing others and stealing their resources. "Tax" means 1%; these aren't taxes and these aren't dues, these are too big for that.

Of course the cause of the evil that rules the planet is fractional banking. Banks needed cash flow to service their loans and they got it from the slave trade, the opium trade, and from pirating on the open seas. Satan's minions used these to build mega-banks (read corporate) and seized power over whole nations.

They then set up central banks of issue for the nations and indebted the entire nation to the central banks. The central banks are owned by the corporate banks and use their power to change all the laws to let banks write loans that charge "interest" at astronomical levels.

Einstein was asked what the most powerful force in the Universe is and replied, "compound interest". Compound interest sucks the life out of a nation. Banks now own everything and the mechanisms that were put in place to take everything are impossible to turn off. Hence the mosquito will keep sucking blood until he blows up from too much blood.

Your patient is already dead. That's why he won't listen to what's wrong with him. Once the host dies the parasite is in trouble. Hence, all the problems at the FED.

I have to disagree with your position on a small amount of interest being okay. I agree that some money must be paid to maintain a monetary system, but that money should pay for the expense of labor and goods to maintain it. The monetary system should be a public non-profit organization.

And, I hope that you're wrong about the patient being dead. I still hope that we will overcome this monster.

Unemployment Skyrockets Among Veterans

“the U.S. Bureau of Labor Statistics says that for the first three quarters of 2005, nearly 15 percent of veterans aged 20-24 are jobless -- three times the national average.”

That’s pretty high; though there are many inner city communities with similar statistics.

“[T]he high unemployment rate is ‘partly because most … seriously injured in [combat] are in the early stages of their military careers and possess limited transferable job skills or very little civilian work experience.’”

In other words, these guys were poor and uneducated before they entered the armed forces and they remain that way upon surviving it.

"The tragedy of homelessness among veterans persists, even when the economy is robust and unemployment is low…"

That’s because the monetary system is our biggest problem—not Iraq or Afghanistan! These young men fought the wrong war, for the wrong reasons.

And, the only way for them to get it is by directing our human capital to put an end to our nation’s privately owned interest-based monetary system--a colossal siphoning machine that siphons the blood, sweat and tears of the working class and channels it in the form of CASH to idle moneylenders.

There is NO WAY to pay for all the things we need to do for these men and many others as long as we are spending over ONE BILLION DOLLARS A DAY to pay INTEREST on U.S. Treasury Bonds which are all owned by institutional investors, domestic and foreign!

This was never the way our monetary system was designed to work under our Constitution!

The difference between the bond and the bill is that the bond lets the money broker collect twice the amount of the bond and an additional 20%. Whereas the currency, the honest sort provided by the Constitution pays nobody but those who contribute in some useful way.

It is absurd to say our Country can issue bonds and cannot issue currency. Both are promises to pay, but one fattens the usurer and the other helps the People."--Thomas Edison 1847-1931

Please, learn about how money is supposed to work; pass the truth on; and to the best of your ability, stop paying, borrowing, and accepting dollars.

When their CASH COW (us!) dries up, they’ll have no one left to milk, and they'll start listening.

All Alone In The World

It's very sad. It talks about how officers leave children alone and defenseless, after they arrest their parents for dealing drugs. It discusses the dire consequences and suggests possible solutions including protocols for arresting officers.

If you've read my other pieces, then you probably already know my response. But, I'll let you know, just in case...:)

Almost all roads these days lead to our corrupted monetary system.

Designing protocols to deal with poor defenseless children who are robbed of their allegedly "bad" natural parents will mitigate the effects, but it will NOT solve the problem.

This is a classic case of supply and demand.

These parents live in neighborhoods with extremely high unemployment rates, no access to capital (which is needed for development). And when there is access to capital, it's at HORRENDOUS interest rates--as much as 924% APR (aka PAY DAY LOANS)! These people are exploited by those who control the money supply.

So, we've established that money is in short supply--which makes people need it more (high demand). What else is in short supply?

Drugs are illegal=short supply. They make people forget about their chronic and insurmountable financial troubles (constant debt), so people want them and are ready to pay a good price for them. They are also physically addictive which exacerbates the demand for them.

Also, they provide a source of income for those who choose to sell it. Do people who sell exploit the needs of those who buy it? Sure! But, so do the moneylenders who started the problem to begin with!

Do people who sell drugs have much of a choice? NO.

Do, money lenders have a choice? HELL YEAH! They can invest their money in creative, PRODUCTIVE ways without exploiting those in need!

Kick 'Em Where It Hurts The Most!

No doubt, spreading the truth is essential to the struggle to rid ourselves of this horrendous monetary system.

But, more action is needed to stop this colossal and continuous transfer of wealth from the working class to moneylenders.

AS MUCH AS YOU POSSIBLY CAN while sustaining your existence---Stop Spending, Stop Borrowing, and Stop Accepting the Dollar!!!

That doesn't mean you can't find CREATIVE WAYS to get what you want.

If someone has something that you want or need, talk to them about the problem, tell them the facts, offer them something you have, or could do, or could create for them and see if they'll exchange it for what they have that you want, and vice versa.

If they want to buy something from you, see if they have something else to offer you that you need--something other than MONEY!

CUT OUT THE CORRUPT MIDDLEMAN--the dollar!!!

At some point, the powers that be will be FORCED to give us a middleman with integrity, one that will not rob us blind via INTEREST!!!

Monday, November 14, 2005

They're Looting The Nation!

But, since no one likes to read Bloomberg, I’ve included the essential bits of the article below. And because much of it is [no doubt, deliberately] confusing financial jargon, my translation follows each bit. If you don't trust me, read it yourself.

The U.S. government is growing more dependent on investors from abroad [mortgaging more of the nation to pay interest on our debts] just as their appetite for Treasury securities is waning [it's too risky].

Overseas investors… own half of all U.S. government debt[we work to enrich them], [and] bought 14 percent of …10-year notes auctioned this year… [we’re auctioned off to the highest bidder]

A drop in demand may extend the slump that pushed Treasury yields to the highest this year, raising the government's borrowing costs to finance a $319 billion deficit.

The U.S. will borrow a record $171 billion … to help pay for relief efforts after Hurricanes Katrina and Rita [following death and destruction, vultures circle for their share of the carcass]

***

Investors ``are cautious about buying too aggressively right now with yields rising so quickly…'' ["let's wait until they're so desperate, they'll pay any percent interest we ask"]

***

The yield… moves inversely to the note's price [they pay less to screw us more] and is used to help determine corporate and consumer borrowing costs, [how desperate we’ll be to borrow more]

Foreign Participation...

[A] larger group that includes U.S. institutional investors, foreign central banks and overseas investors, bought 34.9 percent of the debt sold…down from 47.4 percent …a year earlier. [half of the country belongs to them]``Foreign buying … is waning,'' [collapse is imminent] … ``This would obviously put upward pressure on yields. [please buy! we’ll promise you their grandchildren]

The Treasury will always be able to finance the budget deficit. [printing is easy] The real question is at what cost.'' [how about their great, great, great grandchildren?]

***

`Haunting' Deficit

Overseas investors owned…half the … tradable Treasuries ... [the other half of the country belongs to them]

[F]oreign investors ...[keep] U.S. yields in check as the budget deficit ballooned to a record [height]...[if it weren’t for foreign vultures, domestic vultures would have devoured us by now]

"You can't build in these constant deficits without having them come back to haunt you…'' [we’re screwed]

Japan, the largest foreign owner of Treasuries, cut its holdings of the securities this year [by over $15 billion]… [cutting its losses]

***

`Better Places'

There's little incentive to invest in U.S. debt with inflation accelerating and the Fed forecast ...to keep raising rates into 2006... [when there are too many prostitutes, a prostitute must do more tricks to earn the same dollar]

***

"The Fed has really wanted to get ahead of inflation and stay ahead of it. You're going to see higher yields."

If a dog CANNOT reach his tail, does it matter how fast he chases it?!!

Quigley … said he prefers German government debt to Treasuries even with yields on U.S. 10-year notes exceeding bunds by about the most in six years. [the U.S. is overextended, it simply has nothing of value left to offer]

***

`Good Value'

Treasury yields are the highest among the Group of Seven nations, which may help temper sales by foreign investors. [at these insane profits—let’s milk it for all its worth]

"Treasuries are pretty good value,'' [how can you resist profits at NO RISK?] …"I would recommend getting in at these levels.'' [it won’t last!]

***

Gains in the [value of the dollar] make it more expensive for foreign investors to finance their purchases of U.S. debt.

MAJOR CONFLICT OF INTEREST:the more value we get for our hard earned money the less profitable it is for creditors to rape us—so the Fed increases interest rates to entice creditors to rape us!!!

"Japanese accounts [are] shunning dollar assets," . . . "Foreign investors look at purchasing U.S. assets as two pieces: buying dollars and then buying the securities. If one of these pieces gets too rich, then the transaction becomes less attractive"

HOLY COW!!! They’ll only buy our bonds and charge us interest if they can buy the dollars we need to pay the interest! It's like putting money in one pocket, then taking it out of two different pockets at a faster pace!